Sterne Agee just recommended that investors buy Foot Locker (FL).
“Foot Locker is a better way to capture Nike’s strength,” they noted, “as Foot Locker has the ability to curate the best of athletic brands.”
Unfortunately, I wouldn’t take the advice just yet.
The stock is now massively over-extended on RSI, MACD and MFI.
Each time RSI moves above its 70-line, the stock pulls back. Each time MACD pushes to 2.0, the stock pulls back. And each time MFI moves above its 80-line, the stock pulls back.
All three are above those key lines again now.
Buying Foot Locker at this level is not a good move. Wait for it to pull back to the mean before throwing cash at the name.